National portfolio achieved a growth rate of 24.7% in 2021

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KUWAIT CITY, Dec 11: In line with the positive performance of the Kuwait Stock Exchange indices, the national portfolio achieved a growth rate of 24.7% during 2021, which is a good performance, especially with the process of adjusting the balance of portfolio components after redistributing liquidity according to new ratios among managers, reports Al-Qabas daily. The Kuwait Investment Authority indicated in an official document, seen by the daily that it is working to follow up the workflow of all portfolio managers, and to verify the proper application of the controls stipulated in the national portfolio, after many decisions related to the performance of portfolio managers were issued.

Decisions
The decisions included deciding to withdraw completely from the national portfolio managed by a company, issuing a decision to transfer 250 million dinars from the portfolio managed by the Kuwait Investment Company in cash and in kind to the rest of the managers and deciding to transfer 50 million dinars to the Authority. The authority stated that after preparing a comprehensive and integrated technical study, it resulted in a decision to transfer 250 million dinars at the beginning of 2022 from the Kuwait Investment Company in kind and cash to the other three managers (Kuwait Center, Kamco Invest, National Investment), which resulted in a discrepancy in performance compared to with the general index.

Rebalancing
The transfer decision, the authority said, led the three managers to carry out trades that resulted in a rebalancing of the components of each portfolio in accordance with the measurement index, as is the case with the portfolio managed by the Kuwait Investment Company, and the decision to transfer 50 million dinars from the portfolio to the Investment Authority was implemented, which made it imperative for the manager to sell during the past year. On the other hand, an official source in an investment company indicated that the strong growth of the Kuwait Stock Exchange indices during the last period allowed its investors to achieve good returns, compared to the investment performance in the global markets.

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